Credit Card Debt - Education key to reducing debt

Levels of credit card debt in Western nations have continued to break new records in recent months with a typical Australian credit hard holder carrying over $2,800 in debt from month to month.

Australian credit card comparison website http://www.click4credit.com.au has launched a series of financial tips to educate consumers on managing credit card debt.

Site founder, Richard Greenwood said "credit cards are a great way of managing your monthly expenses but if you don't manage your cards properly or have the wrong card they can be costly".

http://wwww.click4credit.com.au have released the following tips to help reduce credit card debt.

1: Make a budget - In order to get out of credit card debt you need to figure out where you went wrong and ensure you do not continue to rack up more debt.

2: Pay more than the minimum balance - credit cards have traditionally had a minimum payment each month equivalent to 2 to 4 percent of the credit card balance. At that rate it can take years to pay a card off due to the interest charges.

3: Highest interest first - If you have more than one credit card then focus your efforts on paying off the card with the highest interest rate first.

4: Credit card interest is calculated daily. - You receive your credit card bill once per month but your interest is calculated daily. Make repayments as often as you can afford rather than waiting for the bill.

5: Consolidate your credit card debt into one place. - When you have several credit cards it can be difficult to manage the debt and remember which cards you have paid off. Having all your credit card debt in one place makes it much simpler to manage.

6: Balance transfers - one way to consolidate your credit card debt into one place is via a balance transfer to a new credit card. Many credit card companies offer introductory balance transfer offers such as 0% interest for 6 months.

7: Low interest credit cards - Credit cards have traditionally been an expensive form of debt with interest rates around 18-19%. With increased competition a number of low interest cards have emerged with rates as low as 8.99%.

8: Talk to your credit card company - If you are having real trouble paying off the debt then you should try calling your credit card company and explaining the situation.

9: Use a debit card - If you are struggling to keep your spending under control then you could consider using a debit card for new purchases. A debit card has similar acceptance to credit card but is linked directly to your savings account.

10: Finally, don't stress. - While credit card debt can seem very stressful it can be brought under control. There are also non-profit organisations which help with credit card debt management and financial advisers who can devise a detailed strategy for debt reduction to suit your needs.

For more information on Click4Credit, reducing debt or comparing credit card offers see: http://www.click4credit.com.au